An analysis of cash flow versus collateral based lending
Lending by banks to finance economic activity is crucial for the firm and the wider economy. Banks evaluate the loan requests and grant the loan based on the cash flows of the firm, the collateral value or a combination of the two. This project intends to explore the firm, industry and bank characteristics under which the two approaches are applied, and the associated impact on the firm.
An analysis of cash flow versus collateral based lending
Project Team: | Ashok Thampy and Anand Srinivasan |
Sponsor: | IIM Bangalore |
Project Status: | Ongoing (Initiated in March 2020) |
Area: | Finance & Accounting |
Abstract: | Lending by banks to finance economic activity is crucial for the firm and the wider economy. Banks evaluate the loan requests and grant the loan based on the cash flows of the firm, the collateral value or a combination of the two. This project intends to explore the firm, industry and bank characteristics under which the two approaches are applied, and the associated impact on the firm. |